BeTheChange
Master Don Juan
- Joined
- Jun 28, 2015
- Messages
- 1,469
- Reaction score
- 1,144
As some of you may know I'm currently operating a company that provides training courses to students and professionals.
I want to set up a separate charity through which I can effectively provide free training courses to disadvantaged students. I will use the charity to purchase his current company and operate it as a trading subsidiary of the charity.
I then plan to donate any profits the trading subsidiary makes to the charity. I therefore don't think I will have to pay tax on any profits from the subsidiary. Does this sound reasonable? It seems that based on HMRC's guidance this is true. However is this actually the case? Furthermore even if this were the case I plan to eventually dissolve the charity and the trading company and extract all cash in the group.
Would I even be able to (1) dissolve the charity and take donations from the subsidiary out the company as a Director or Trustee and (2) would those funds still qualify for Entrepreneurs Relief?
I want to set up a separate charity through which I can effectively provide free training courses to disadvantaged students. I will use the charity to purchase his current company and operate it as a trading subsidiary of the charity.
I then plan to donate any profits the trading subsidiary makes to the charity. I therefore don't think I will have to pay tax on any profits from the subsidiary. Does this sound reasonable? It seems that based on HMRC's guidance this is true. However is this actually the case? Furthermore even if this were the case I plan to eventually dissolve the charity and the trading company and extract all cash in the group.
Would I even be able to (1) dissolve the charity and take donations from the subsidiary out the company as a Director or Trustee and (2) would those funds still qualify for Entrepreneurs Relief?